Australia Government Announces Solar Sunshot Initiative for Regional Development

The Australian Government’s $1 billion investment in the Solar Sunshot program aims to bolster the nation’s position as a renewable energy leader, both domestically and globally. This commitment coincides with the establishment of the Net Zero Economy Authority, signaling a concerted effort to drive investments toward a clean energy future across Australia’s regions.

Solar Sunshot intends to bolster Australia’s presence in the global solar manufacturing supply chain by offering support, including production subsidies and grants. This initiative seeks to increase domestic production of solar panels, with a focus on regions like the Hunter Region, where the announcement was made at the former site of the Liddell Power Station.

Despite one in three Australian households having solar panels, only 1 percent of these are locally made. In conjunction with Solar Sunshot, the NSW Labor Government has launched the NSW Net Zero Manufacturing Initiative, with an initial $275 million round aimed at supporting workers, small businesses, manufacturers, and innovators in transitioning to a low-carbon economy.

The second round of the NSW Net Zero Manufacturing Initiative will involve collaborating with industry to facilitate government procurement, providing offtake agreements to local manufacturers of renewable products and low-carbon materials.

These initiatives underscore the commitment to supporting regional prosperity in the transition to a net-zero economy by bolstering the industrial base, predominantly located in regional areas.

The $1 billion federal investment in Solar Sunshot complements the Australian Government’s existing commitment of over $40 billion to establish Australia as a renewable energy powerhouse.

The Australian Renewable Energy Agency (ARENA) will collaborate with industry to design and implement Solar Sunshot, examining the entire solar supply chain, from ingots and wafers to cells, module assembly, and related components. Consultation is set to begin in mid-April, aligning with other ongoing initiatives like the Hydrogen Headstart program administered by ARENA.

Minister for Climate Change and Energy, Chris Bowen, said, “Australian research helped invent the modern solar panel – today’s announcement is about creating Australian jobs to help manufacture them.

“We know that the world’s climate emergency is Australia’s jobs opportunity, $1 billion to support Australian manufacturing in solar technology will help seize that opportunity.”